The company prides itself on its ability to understand the market and quickly underwrite its investments. When you’re determining the right REIT for your investment goals, it’s important to consider factors like the trust’s valuation, balance sheet strength and asset quality. Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron’s, Bloomberg, Fox Business, and many other media outlets.

The preferred stock holdings’ upside to par value also provides fuel for further price recovery. There has also been some insider buying of DNP over the last year, which boosts my confidence in this 8.7%-yielding CEF. Like UTG, DNP is about 30% leveraged, but unlike the equity-only UTG, DNP is split roughly 85% stocks and 15% high-grade bonds.

Its monthly dividends as of July 2023 were $.27 per share for a total annual dividend yield of 7.2%. Dividend income offers a stable way to make passive money with your savings. REITs with monthly dividends can help you grow your money with sound investments, though with any investment, there is always some risk involved. And the great part is, the dividends are often provided at a higher rate than most standard stocks because of the level or risk. Learn more about how dividends with REITs work and what to expect from your investment. Alpine Income — our 3rd top-ranked REIT — is a real estate investment trust (REIT) that owns and operates a high-quality portfolio of commercial net lease properties.

We’ve researched these aspects and more, including stock prices, growth potential, property outlooks, payout ratios, and leadership and sponsors of a host of real estate investment trusts. Those are four real estate investment trusts offering monthly dividends. While reits that pay monthly it may be sweet to be the recipient of monthly rather than quarterly dividends, investors should always look deep and make sure the underlying REIT makes sense as a business. Austin Rogers is a REIT specialist with a professional background in commercial real estate.

Like any investment, it’s important that they have good profits, strong balance sheets, and as little debt as possible (especially the short term kind). Types of investments – TWO focuses on agency RMBS, mortgage servicing rights and additional financial assets. Types of investments – IRM’s main investments relate to secure records and art storage and data centers, although it also offers mortgage and loan solutions. This real estate finance company also invests in money market instruments, interest-only securities, and U.S. Simon Property Group (SPG) is a commercial real estate hybrid REIT with a healthy mix of equity and mortgage-backed securities. Apollo usually invests in mortgages and various other commercial collateral in both Europe and the United States.

1. Recession fears have caused shares of mortgage REITs to decline in 2022, with ABR down about 20% for the year-to-date.
2. Payments have risen eight years in a row and payout is modest at 65% of FFO.
3. But it comes with the risk of ongoing share price declines and additional dividend cuts.
4. This area is characterized by limited new supply, rising demand and rent growth that has consistently exceeded national averages.
5. The Trust was able to collect 100% of contract rents in the first and second quarter.

This results in strong operating margins in the 80% to 90% range, much higher than the ~65% operating margins of most shopping center REITs. FCPT has proven markedly resilient to the pandemic, as it has posted record funds from operations (FFO) per share in each of the last two years. Lisa currently serves as an equity research analyst for Singular Research covering small-cap healthcare, medical device and broadcast media stocks. Steadily rising mobile data traffic is creating demand for more cell towers worldwide. The REIT’s return on investment rises from 3% at one tenant per cell tower to 13% with two tenants and 24% with three tenants.

TRNO operates in six major coastal U.S. markets, including Seattle, Washington D.C. These markets are important because of their population density, strategic position on key shipping routes and physical/regulatory barriers to new supply. However, the selloff allows investors seeking out REIT dividends to get one of the best names for growth at a discount.

Can You Lose Money on a REIT?

New borrowings can fund property acquisitions, which increases profits, cash flow and dividends. Mortgage REITs, for example, buy and sell mortgages and mortgage-backed securities. This makes them more sensitive to interest rate changes than equity REITs. Depending on the type of mortgages they finance, default risk may also be a factor. As an investor, you routinely make trade-offs between risk and reward. If you want stability, you invest in slow-growing, mature companies.

Chatham Lodging Trust % dividend CLDT %

Its focus is in skilled nursing and assisted living facilities, and its portfolio is primarily triple-net leases operated by healthcare providers. Despite the pandemic, Alpine has raised its dividend 22% this year and thus it is offering a 5.3% dividend yield. However, given the healthy payout ratio of 68%, the reliable cash flows backed by multi-year leases and growth potential, the dividend should be considered safe in the absence of a prolonged crisis.

Invest in REITs with monthly dividends today with Interactive Brokers. We see Omega’s growth at just 2% annually, which is well below its historical average of more than 5%. We like its exposure to the growing population of people that need assisted living, but tenant solvency issues and expensive financing have kept a lid on growth of late, and we believe this may persist. Omega implemented a new at-the-market share offering worth up to $1 billion and refinanced eight facilities to improve its capital structure. Following Q2 results, we now expect $3.30 in FFO per share for this year, driven by strong rent collection trends and favorable capital recycling. American Tower supplements organic growth from lease-ups with acquisitions.

Download “Five Dividend Stocks To Beat Inflation,” a special report from Forbes’ dividend expert, John Dobosz. AGNC uses its tangible net book value „at risk” leverage ratio as its primary measure of leverage. That’s the sum of the debt it uses to buy securities divided by stockholders’ equity. Invest in residential mortgage-backed securities with ARMOUR Residential REIT.

Stag Industrial Inc. (NYSE: STAG)

Fueling this growth is TRNO’s expansion strategy, which focuses on selective infilling of its six coastal markets via acquisitions, redevelopment and leasing. In the first half of 2022, the REIT closed $316 million of acquisitions, with another $51.3 million of properties under contract. Compared to other self-storage REITs, Extra Space Storage is a best-in-class operator.

Healthcare REITs

The company’s fundamental strength is helping to reward investors seeking out REIT dividends. Terreno issued a nearly 18% dividend hike in August and has averaged https://1investing.in/ double-digit annual dividend growth over the last five and 10-year periods. And it has done this while maintaining payout from FFO in the 75% range.

Retirement Investments strives to keep its information accurate and up to date. The information on Retirement Investments could be different from what you find when visiting a third-party website. Omega Health Investors (OHI) is an equity REIT that provides financing and capital for eldercare facilities. It focuses on triple-net, long-term leases and often reinvests in its operators to ensure long-term financial success. Starting in July I will be adding a new column in my newsletter called the „The REIT Paying Monthly Report” in which I will rank the group of frequent payers based on dividend safety and predictability. Finally, of all of Cohen & Steers’ real estate CEFs, RNP is my favorite because of its 50/50 mixture of REITs and preferred stocks.

All of the companies featured here have been reliably raising payouts in recent years and boast five-year average annual dividend growth of at least 8.8%. What’s more, these REIT dividends are well-positioned for continued growth thanks to the companies’ solid long-term fundamentals. In addition to generous yields, REITs have a built-in cushion to hedge against inflation and limit downside risk. REITs tend to have embedded escalators in their leases that cause rents to rise annually. And many firms will link rent increases with the CPI, making REITs ideal investments during times of higher inflation.